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BEST To Sell Express Delivery Business In China To J&T Express For $1.1 Bln

BEST Inc. (BEST), a Chinese integrated smart supply chain solutions and logistics services provider, on Friday said it has agreed to sell its express delivery business in China to J&T Express Co., Ltd., a PRC limited liability company and a logistics services provider in China, for approximately RMB6.8 billion or $1.1 billion. The transaction is expected to close in the first quarter of 2022.

Johnny Chou, Founder, Chairman and Chief Executive Officer of BEST, commented: "In light of the unexpected ongoing challenges from Covid-19 and evolving industry dynamics, we believe this transaction allows us to better capitalize on our strengths by focusing on supply chain-based logistics solutions and providing integrated supply chain, freight and global logistics services to our customers."

BEST expects to get about RMB3.9 billion or $0.6 billion in cash for the unit it is selling. The sale does not include any of BEST's other businesses, namely, Supply Chain Management, Freight, Ucargo and Global, the seller said in a statement.

Johnny Chou said the deal is expected to afford the company a better way to profitability and improve its balance sheet.

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